An Introduction | To Behavioral Economics

: Assumes people have stable preferences, perfect information, and always choose the best possible outcome for themselves.

: Acknowledges bounded rationality —our thinking is limited by time, information, and brain power. It explores the gap between what people "should" do and what they actually do. 2. Core Concepts & Principles An introduction to behavioral economics

The field is defined by several recurring psychological patterns: An Introduction to Behavioral Economics : Assumes people have stable preferences